Zed Seselja (ACT, Liberal Party, Assistant Minister for Treasury and Finance) Share this | Hansard source

The government will be opposing this amendment. The amendment, as set out, removes the first schedule of the competition mandate provisions from the bill. This means that the status quo would prevail, and ASIC would not be required to consider competition in the financial system when it exercises its powers or functions. So what are the benefits of including the first schedule, as we would support an explicit requirement to take competition issues into account will require ASIC to consider how the exercise of its functions and powers may impact on competition in the financial system. This will provide ASIC with certainty. Competition should be a factor in its decision-making processes, which should lead to a more competitive financial system.

Competition in the financial system puts strong discipline on businesses to lower costs associated with the delivery of products and services. It further encourages innovation and deployment of new technology and delivers more choices for consumers at lower prices. The effects of stronger competition in the financial system are felt well beyond financial markets and in other parts of the economy. Increased competition can benefit the economy as a whole via improvements to productivity and economic growth. For all of these reasons, we won't be supporting the Greens' amendment.